ROMEO HOME BUILDER GETS JAIL TIME
IN MORTGAGE FRAUD SCHEME

FOR IMMEDIATE RELEASE

February 22, 2011

Giuseppe Cracchiolo, 60, of Romeo, Michigan was sentenced for his role in a
mortgage fraud scheme to six months imprisonment, followed by three years supervised
release, United States Attorney Barbara L. McQuade announced today.

McQuade was joined in the announcement by Special Agent in Charge Erick
Martinez, Internal Revenue Service Criminal Investigation Division, Andrew Arena,
Special Agent in Charge, Federal Bureau of Investigation, Detroit, Robert L. Davila,
Special Agent in Charge U.S. Treasury Inspector General for Tax Administration and
Dean Tirro, Acting Special Agent in Charge United States Secret Service, Detroit.

United States District Judge George Caram Steeh also ordered Cracchiolo to
serve an addition six months home confinement and pay restitution of $1,654,500 to
numerous financial institutions. In September 2010, Cracchiolo pleaded guilty to
conspiracy to commit wire fraud.

According to court records, from 2002 through 2005, Atiim Collins, 38, of Detroit,
Michigan, owner of Edgewood Property Management, in Shelby Township, Michigan,
recruited and paid individuals to act as straw buyers in fraudulent mortgage loan
transactions. The scheme to defraud involved homes built by Cracchiolo, through his
company, Mark Christian, Inc (MCI), in Romeo, Michigan. The straw buyers generally
had good credit ratings, but not enough income, and lacked the qualifications necessary
to purchase the properties. Ted Carter, 59, of Detroit, Michigan, participated in the
conspiracy by creating false documents, including fictitious W-2 forms and pay stubs.

These false documents were used by the straw buyers to support the fraudulently
inflated asset and income information submitted on their mortgage loan applications.
After the loans were approved by the lending companies, Cracchiolo used MCI to
receive and disburse the illegally gained proceeds. This scheme to defraud resulted in
the approval and disbursement of over $4.1 million in fraudulent mortgage loans.

Cracchiolo admitted that, during the conspiracy, he arranged to have the illegally
obtained loan proceeds transferred back to borrowers and others without the knowledge
and approval of the lending companies. All of the properties involved in the fraud went
into foreclosure resulting in approximately $2.5 million in losses to the lenders.

McQuade said, "We are all victims in a case like this because fraudulent loans
lead to foreclosures and vacant homes, which lower property values and become
havens for criminal activity."

"Those who line their pockets with profits from these schemes should know they
will not go undetected and will be held accountable," said Erick Martinez, Special Agent
in Charge IRS-Criminal Investigation. "IRS stands ready to partner with all law
enforcement agencies to pursue individuals who commit these types of crimes that can
negatively impact our community and economy."

On December 3, 2010, Carter was sentenced to one year and a day
imprisonment, followed by two years supervised release. On December 6, 2010,
Collins was sentenced to five years probation, with one year to be served at a
residential reentry center and six months home confinement. They must also pay
restitution, joint and several, with Cracchiolo.

This case is being prosecuted by Assistant U.S. Attorney Karen Reynolds.